Compare Term Life Insurance Quotes: 5 Aspects to Evaluate

With increased competition in the insurance industry, it is now easier for consumers to quickly compare term life insurance quotes.  However, when you are conducting a term life comparison, it is important to evaluate five important aspects that determine the true value of a life insurance policy.

Look for Insurance Company Ratings

When you compare life insurance, the foremost aspect to consider is the company’s credit rating.  Typically, you want to only purchase life insurance policies that are carried by companies that have a rating of A or higher.   Although a “B” grade is acceptable, the risk of default or bankruptcy is not worth the few dollars you may save each month.

When Was the Company Established?

Another element to consider when you compare term life insurance quotes is to ascertain when the company was originally founded.  Generally speaking, companies that have a long history have proven that they can weather natural disasters and financial uncertainties – indicating that they can continue to be financially solvent into the future of your life term policy as well.

Ensure Your Rates are Guaranteed

You should only select a term insurance policy that guarantees your quote for the entire term of coverage.  You do not want to select coverage only to find that your rates may increase one year later.  By comparing term insurance quotes that are guaranteed, you can ensure that your annual costs will not fluctuate over the entire term.

Is an Accelerated Benefit Rider Included?

A term life insurance policy is meant to protect your family against the unthinkable.  With that said, when you compare life insurance quotes, look for one that gives you an accelerated benefit rider benefit – without any additional cost.  With this option, if you are terminally ill, and your life expectancy is less than 12 months, you can request a prepayment of 25% of your entire death benefit.  This allows you to have funds to assist with healthcare or other costs associated with a terminal illness.

Do You Have an Option to Convert?

When you get a term life insurance quote, look for one that gives you a conversion option.  This will allow you to convert your term life insurance into a whole policy in the future – which gives you cash value for the premiums you paid into the policy.

Can You Renew Your Policy?

In a term life comparison, you should seek a policy that will give you an option to renew the same coverage when the initial term ends – regardless of any changes in your health.  Some insurance companies will allow you to renew your policy until the age of 100.

When you compare term life insurance, it is important to evaluate more than simply the annual price alone.  By looking for conversion, renewal, and rate guarantee options, along with the financial and historical stability of the insurance companies, you can conduct the best term life comparison for your family’s protection.